Half-year Report

RNS Number : 6123C

Henderson Opportunities Trust PLC

18 June 2019

 

HENDERSON INVESTMENT FUNDS LIMITED

HENDERSON OPPORTUNITIES TRUST PLC

LEGAL ENTITY IDENTIFIER (LEI):  2138005D884NPGHFQS77

18 June 2019

HENDERSON OPPORTUNITIES TRUST PLC

Unaudited results for the half year ended 30 April 2019

This announcement contains regulated information.

Investment Objective

The Company aims to achieve capital growth in excess of the FTSE All-Share Index from a portfolio of UK investments.

Performance Highlights

	(Unaudited) 30 April 2019	(Unaudited) 30 April 2018	(Audited)  31 October 2018
Net Asset Value (NAV) per ordinary share	1,232.6p	1,246.7p	1,179.4p
Ordinary share price	1,007.5p	1,032.5p	990.0p
Net Assets	£97.4m	£99.8m	£94.4m
Discount	18.3%	17.2%	16.1%
Total return per ordinary share	64.5p	(9.1p)	(70.0p)
Revenue return per ordinary share - basic and diluted	13.4p	10.0p	20.2p
Dividends per ordinary share	7.0p	6.5p	21.0p
Net Gearing¹	14.0%	13.4%	6.7%

¹ The net gearing percentage reflects the amount of borrowings (bank loans or overdrafts) the Company has used to invest in the market less cash and investment cash funds, divided by net assets multiplied by 100.

Total Return Performance to 30 April 2019 (including dividends reinvested and excluding transaction costs)
		6 Months %	1 Year %	3 Years %	5 Years %
NAV per ordinary share1	5.6		0.4	32.8	42.5
Benchmark2	6.4		2.6	33.3	35.2
Share price3	3.3		-0.4	29.1	22.0
Sector average NAV4	4.7		0.0	24.8	37.1

Sources: Morningstar for the AIC, Datastream and Janus Henderson

1. Net Asset Value (NAV) total return per ordinary share with income reinvested

2. FTSE All-Share Index total return

3. Share price total return using mid-market closing price

4. Average NAV of the AIC UK All Companies Sector with income reinvested

For further information, please contact:
James Henderson Fund Manager Janus Henderson Investors Telephone: [phone]	Laura Foll Fund Manager Janus Henderson Investors Telephone: [phone]
Peter Jones Chairman Henderson Opportunities Trust plc Telephone: [phone]	Laura Thomas Investment Trust PR Manager Janus Henderson Investors Telephone: [phone]

 

INTERIM MANAGEMENT REPORT

CHAIRMAN'S STATEMENT

Performance

The NAV total return over the first six months of the financial year increased by 5.6%, while the FTSE All-Share total return increased by 6.4%. It was a period in which large companies outperformed smaller companies due to general economic concerns and uncertainty over Brexit. Over five years or more the Company has a strong record against the benchmark, as illustrated in the following table:

	1 year %	3 years %	5 years %	10 years %
NAV (total return)	0.4	32.8	42.5	361.1
FTSE All-Share (total return)	2.6	33.3	35.2	167.9
Outperformance (+)/ Underperformance (-)	-2.2	-0.5	+7.3	+193.2

The share price remained on a discount to NAV moving from 16.1% to 18.3% over the period.

Gearing

During the period the Fund Managers used the general weakness in equity prices inspired by uncertainty over the economy to refresh the portfolio by adding four new stocks. The Company was a net buyer of equities and the gearing moved up to 14.0% from 6.7% at the start of the period.

Earnings and Dividend

The revenue return in the period was £1,061,000, compared with £797,000 in the corresponding period last year.  An interim dividend of 7.0 pence per ordinary share (2018: 6.5 pence) has been declared payable on 20 September 2019 to shareholders on the register of the Company on 16 August 2019.  A noticeable feature of the half year was the level of income achieved by stock lending. This was £224,000 over the period compared to £nil over the corresponding period last year and £49,000 for the year ended 31 October 2018. Stock lending is a closely monitored activity with a cap on the amount of stock that can be lent. The Board considers that it represents low risk to the portfolio and provides useful income.

Share Capital

Since the year end, 99,670 ordinary shares have been bought back, under the authority given by shareholders at the Company's Annual General Meeting, at an average price of 937p each. The shares are being held in treasury.  We purchased these shares in order to enhance NAV marginally, it did this by 0.2%, at a time when the underlying shares in the portfolio appeared particularly oversold.  We will continue to be opportunistic in our approach to buybacks with the objective of increasing the NAV rather than reducing the discount, although that may be a secondary consequence. The Board believes that the discount is more likely to be reduced over time by strong investment performance and the marketing of the strengths of the Company.

Outlook

The UK economy continues to grow but at a subdued pace. This is in spite of the macroeconomic uncertainties, in particular the fear that Brexit would be detrimental for UK economic growth. Some of this is priced into UK equity prices and accounts for the fall of Sterling and the underperformance of the UK markets since the referendum.  A continuation of open trade across borders with Europe would be positive. There are UK companies that are trading on reasonable valuations and yet have strong growth prospects because of dynamic management teams, and such companies remain the focus of the portfolio.

Peter Jones

Chairman

18 June 2019

FUND MANAGERS' REPORT

Review

The net asset value of the portfolio grew 5.6% in the six months to the end of April, while the benchmark FTSE All-Share rose 6.4% (both on a total return basis). 

It was a difficult period for AIM which, having had a strong start to 2018, fell materially in the fourth quarter (-21.5%) before recovering and finishing virtually unchanged over the six months. As at the end of April, 58% of the portfolio is invested on AIM. While it is disappointing to be underperforming our benchmark the FTSE All-Share over the period, part of what we are trying to achieve is providing exposure to high growth companies on AIM but without the heightened volatility that was particularly evident in the fourth quarter. In this context we are pleased to have outperformed the AIM All-Share Index and continue to see excellent value in the underlying portfolio.

Portfolio Attribution

The largest contributor to performance over the six months was RWS Holdings, which provides specialist translation services for sectors such as pharmaceuticals. As it is one of the largest companies in the markets that it operates in, it has a significant scale advantage. For this reason it generates consistently good operating margins and is also generating double digit organic growth. While it has performed well and now trades on a higher valuation, we are happy to maintain the current position and it sits within the 'compounders' sleeve of excellent quality companies within the portfolio.

The largest detractor from performance was Zoo Digital, which provides dubbing and subtitling services for content producers such as Netflix and Disney. The key advantage of Zoo Digital versus traditional studios is that it allows freelance actors to record from home using Zoo's software. This provides content producers with quicker, but still good quality, translations that allow them to transmit content more quickly across the globe. The reason for the poor share price performance during the period was that legacy work that Zoo used to undertake in the DVD market has rolled over more steeply than expected. Their higher value dubbing work continues to grow well and their customer base is successfully expanding. The position was added to over the period as in our view the current valuation looks compelling and the investment thesis of substantially growing dubbing revenue has not changed.  As at 17 June 2019, the share price since the period end had recovered by 16.4%.

Portfolio Activity

Having brought the gearing down in summer last year we used the fourth quarter and beginning of 2019 to be net buyers and as a result the gearing rose back to 14.0%.  This net buying included adding to holdings that we had previously reduced earlier in 2018 having de-rated substantially. Examples of this included e-learning services provider Learning Technologies¹ and Senior, an engineer of predominantly aerospace components (which was sold in entirety in early 2018 and subsequently repurchased).

The largest purchase during the period was RBS. This is a new holding in the portfolio, and as at the end of April was 1.1%. The legacy issues of RBS (such as PPI) are largely resolved, while the balance sheet has been significantly strengthened such that it has now material excess capital that we think is likely to be returned to shareholders via a series of special dividends and share buybacks.

The largest individual sale during the period was Faroe Petroleum, which received a cash offer at a significant premium to the undisturbed share price from DNO, a Norwegian oil & gas company. It is encouraging to see takeover interest returning in the UK market and another of the holdings, Dairy Crest, was taken over by a Canadian company who wished to gain access to some of their established brands, such as Cathedral City.

Outlook

Following a difficult fourth quarter of 2018, valuations particularly within AIM have been re-set and are now at what, in our view, are attractive levels. There is heightened political and macro-economic uncertainty but our focus as fund managers remains on finding relatively unknown but fast growing smaller companies and larger companies in the UK where sentiment has become overly pessimistic.

James Henderson and Laura Foll

Fund Managers              

18 June 2019

¹ Data illustrating Learning Technologies' share price since first purchase is set out below

	March 2017	June 2019	September 2017	December 2017	March 2018	June 2018	September 2018	December 2018	March 2019
Share Price	42.5p	45.5p	55.0p	68.0p	88.0p	112.0p	166.5p	69.4p	70.6p

(Reduced at 160p in September 2018 and added to at 76p in January 2019)

Source: Datastream

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties associated with the Company's business can be divided into the following main areas:

•           investment activity and strategy;

•           financial instruments and the management of risk;

•           operational;

•           accounting, legal and regulatory;

•           liquidity;

•           net gearing; and

•           failure of Janus Henderson.

Detailed information on these risks is given in the Strategic Report and in the Notes to the Financial Statements in the Company's Annual Report for the year to 31 October 2018.

In the view of the Board, these principal risks and uncertainties were unchanged over the last six months and are as applicable to the remaining six months of the financial year as they were to the six months under review.

Directors' Responsibility Statement

The Directors confirm that, to the best of their knowledge:

(a)       the condensed financial statements for the half year ended 30 April 2019 have been prepared in accordance with "FRS 104 Interim Financial Reporting";

(b)       this report includes a fair review of the information required by the Disclosure Guidance and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

(c)       this report and the condensed financial statements include a fair review of the information required by the Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

For and on behalf of the Board

Peter Jones

Chairman

18 June 2019

INVESTMENT PORTFOLIO at 30 April 2019

Company

Valuation £'000

Portfolio %

Company

Valuation £'000

Portfolio %

Blue Prism¹ RWS¹ Serica Energy¹ Tracsis¹ Loopup¹ HSBC Johnson Matthey Boku¹ Rolls Royce Rio Tinto 10 Largest Keyword Studios¹ Prudential Sigmaroc¹ Ricardo Learning Technologies¹ Oxford Instruments Eland Oil & Gas¹ Assura Flowtech¹ Springfield Properties¹ 20 Largest Tarsus Workspace Aveva SDL Standard Chartered XP Power 4D Pharma¹ Zoo Digital¹ Integrafin The Gym Group 30 Largest Next Fifteen Communications¹ Character¹ Cohort¹ Miton¹ Vodafone Redde¹ Tribal¹ Royal Bank of Scotland GB Group¹ Fastjet¹ 40 Largest Direct Line Insurance Vertu Motors¹ IQGEO¹ Hollywood Bowl Gateley¹ Ceres Power¹ Premier Oil Horizon Discovery¹ Keystone Law¹ Franchise Brands¹ 50 Largest

5,260 4,981 4,752 3,200 2,931 2,706 2,670 2,486 2,287 2,232 33,505 2,180 2,169 2,162 2,150 2,099 2,092 2,018 1,960 1,742 1,723 53,800 1,721 1,680 1,672 1,635 1,610 1,608 1,501 1,474 1,451 1,451 69,603 1,450 1,400 1,323 1,260 1,207 1,204 1,198 1,198 1,190 1,172 82,205 1,153 1,132 1,100 1,023 932 909 861 857 855 855 91,882

4.8 4.5 4.3 2.9 2.6 2.4 2.4 2.2 2.1 2.0 30.2 2.0 2.0 1.9 1.9 1.9 1.9 1.8 1.8 1.6 1.5 48.5 1.5 1.5 1.5 1.5 1.5 1.5 1.4 1.3 1.3 1.3 62.8 1.3 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.0 74.1 1.0 1.0 1.0 0.9 0.9 0.8 0.8 0.8 0.8 0.8 82.9

Redcentric¹ Mondi IP Group Senior IDOX¹ Eurocell Quixant¹ Creo Medical¹ Oxford Biodynamics¹ Findel 60 Largest Lloyds Banking Group IQE¹ BT Group Van Elle¹ Ebiquity¹ Aggregated Micro Power¹ International Consolidated Airlines Ilika¹ IG Group Surface Transforms¹ 70 Largest 21 Remaining (excluding cash and investments written down to zero) Total

841 840 832 811 771 752 719 658 654 645 99,405 626 597 573 550 550 544 540 540 510 473 104,908 5,969 110,877

0.8 0.8 0.7 0.7 0.7 0.7 0.6 0.6 0.6 0.6 89.7 0.6 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.4 0.4 94.6 5.4 100.0

¹ Quoted on the Alternative Investment Market ('AIM')

We have one unlisted holding, Oxford Sciences Innovation, which was 0.4% of the portfolio as at the period end. 

Attribution Analysis to 30 April 2019

The table below sets out the top five contributors and top five detractors to NAV

Top Five Contributors	Share Price Return %	Contribution to NAV %
RWS	+28.0		+1.0
Serica Energy	+20.1		+1.0
Fastjet	+77.7		+0.6
Rio Tinto	+26.4		+0.5
Integrafin	+49.6		+0.5

Top Five Detractors	Share Price Return %	Contribution to NAV %
Zoo Digital	-50.3	-0.8
Learning Technologies	-21.4	-0.6
Redde	-28.8	-0.5
The Gym Group	-22.3	-0.5
IQGEO	-27.6	-0.5

Source: Janus Henderson

Portfolio by Index at 30 April 2019

As a percentage of the investment portfolio excluding cash

Index	FTSE All-Share Index %	Portfolio  %
FTSE 100	80.7	17.7
FTSE 250	15.7	9.0
FTSE SMALLCAP	3.6	11.3
FTSE FLEDGLING	0.0	0.4
FTSE AIM	0.0	58.1
OTHER	0.0	3.5
Total	100.0	100.0

Source: Factset

Portfolio by Market Capitalisation at 30 April 2019

As a percentage of the investment portfolio excluding cash

Index	FTSE All-Share Index %	Portfolio %
Greater than £2bn	88.7	19.2
£1bn - £2bn	5.3	15.1
£500m - £1bn	3.3	10.5
£200m - £500m	2.3	20.4
£100m - £200m	0.4	17.6
£50m - £100m	0.0	7.8
Less than £50m	0.0	9.0
Other	0.0	0.4
Total	100.0	100.0

Source: Factset

 

CONDENSED INCOME STATEMENT

	(Unaudited) Half Year ended 30 April 2019			(Unaudited) Half Year ended 30 April 2018			(Audited) Year ended 31 October 2018
	Revenue  return £'000	Capital return £'000	Total £'000	Revenue  return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
Gains/(losses) from investments held at fair value through profit or loss	-	4,277	4,277	-	(1,256)	(1,256)	-	(6,669)	(6,669)
Investment income held at fair value through profit or loss	1,095	-	1,095	1,058	-	1,058	2,097	-	2,097
Interest receivable and other income	228	-	228	9	-	9	74	-	74
Gross revenue and capital gains/(losses)	1,323	4,277	5,600	1,067	(1,256)	(189)	2,171	(6,669)	(4,498)
Management fee (note 2)	(71)	(166)	(237)	(80)	(185)	(265)	(165)	(386)	(551)
Administrative expenses	(167)	-	(167)	(153)	-	(153)	(319)	-	(319)
Net return/(loss) before finance costs and taxation	1,085	4,111	5,196	834	(1,441)	(607)	1,687	(7,055)	(5,368)
Finance costs	(23)	(54)	(77)	(36)	(85)	(121)	(69)	(160)	(229)
Net return/(loss) before taxation	1,062	4,057	5,119	798	(1,526)	(728)	1,618	(7,215)	(5,597)
Taxation on net return	(1)	-	(1)	(1)	-	(1)	(2)	-	(2)
Net return/(loss)  after taxation	1,061	4,057	5,118	797	(1,526)	(729)	1,616	(7,215)	(5,599)
Return/(loss) per ordinary share - basic and diluted (note 4)	13.36p	51.11p	64.47p	9.96p	(19.07p)	(9.11p)	20.20p	(90.18p)	(69.98p)

The total columns of this statement represent the Income Statement of the Company, prepared in accordance with FRS 104.

All revenue and capital items in the above statement derive from continuing operations. The revenue and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. The Company had no recognised gains or losses other than those disclosed in the Income Statement and Statement of Changes in Equity. The accompanying notes are an integral part of the condensed financial statements.

CONDENSED STATEMENT OF CHANGES IN EQUITY

	(Unaudited) Half Year ended 30 April 2019
	Called up share capital  £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total shareholders' funds £'000
At 1 November 2018	2,000	14,838	2,431	72,334	2,757	94,360
Ordinary dividends paid	-	-	-	-	(1,146)	(1,146)
Net return after taxation	-	-	-	4,057	1,061	5,118
Buyback of ordinary shares into treasury	-	-	-	(939)	-	(939)
At 30 April 2019	2,000	14,838	2,431	75,452	2,672	97,393

	(Unaudited) Half Year ended 30 April 2018
	Called up share capital  £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total shareholders' funds £'000
At 1 November 2017	2,000	14,838	2,431	79,549	2,781	101,599
Ordinary dividends paid	-	-	-	-	(1,120)	(1,120)
Net (loss)/return after taxation	-	-	-	(1,526)	797	(729)
At 30 April 2018	2,000	14,838	2,431	78,023	2,458	99,750

	(Audited) Year ended 31 October 2018
	Called up share capital  £'000	Share premium account £'000	Capital redemption reserve £'000	Other capital reserves  £'000	Revenue reserve £'000	Total shareholders' funds £'000
At 1 November 2017	2,000	14,838	2,431	79,549	2,781	101,599
Ordinary dividends paid	-	-	-	-	(1,640)	(1,640)
Net (loss)/return after taxation	-	-	-	(7,215)	1,616	(5,599)
At 31 October 2018	2,000	14,838	2,431	72,334	2,757	94,360

The accompanying notes are an integral part of these condensed financial statements.

CONDENSED STATEMENT OF FINANCIAL POSITION

	(Unaudited) 30 April 2019 £'000	(Unaudited) 30 April 2018 £'000	(Audited) 31 October 2018 £'000
Investments held at fair value through profit or loss
Listed at market value	44,347	44,665	35,971
Quoted on AIM at market value	66,130	68,137	65,319
Unlisted at market value	400	400	400
	110,877	113,202	101,690
Current assets
Investments held at fair value through profit or loss	2	2	2
Debtors	579	254	147
Cash at bank and in hand	935	212	707
	1,516	468	856
Creditors: amounts falling due within one year
Bank loans	(14,552)	(13,540)	(7,001)
Other creditors	(448)	(380)	(1,185)
Net current liabilities	(13,484)	(13,452)	(7,330)
Net assets	97,393	99,750	94,360
Capital and reserves
Called up share capital (note 6)	2,000	2,000	2,000
Share premium account	14,838	14,838	14,838
Capital redemption reserve	2,431	2,431	2,431
Other capital reserves	75,452	78,023	72,334
Revenue reserves	2,672	2,458	2,757
Total shareholders' funds	97,393	99,750	94,360
Net asset value per ordinary share - basic and diluted (note 7)	1,232.6p	1,246.7p	1,179.4p

The accompanying notes are an integral part of these condensed financial statements.

 

CONDENSED STATEMENT OF CASH FLOWS

	(Unaudited) Half Year ended 30 April 2019 £'000	(Unaudited) Half Year ended 30 April 2018 £'000	(Audited) Year ended 31 October 2018 £'000
Cash flows from operating activities
Net return/(loss) before taxation	5,119	(728)	(5,597)
Add back: finance costs	77	121	229
Add: (gains)/losses on investments held at fair value through profit or loss	(4,277)	1,256	6,669
Withholding tax on dividends deducted at source	(2)	(2)	(1)
(Increase)/decrease in debtors	(203)	(43)	62
Decrease in creditors	(34)	(918)	(899)
Net cash inflow/(outflow) from operating activities	680	(314)	463
Cash flows from investing activities
Purchase of investments	(15,115)	(13,304)	(30,932)
Sale of investments	9,268	15,021	39,550
Net cash (outflow)/inflow from investing activities	(5,847)	1,717	8,618
Cash flows from financing activities
Equity dividends paid (net of refund or unclaimed distributions and reclaimed distributions)	(1,146)	(1,120)	(1,640)
Buyback of ordinary shares into treasury	(939)	-	-
Net loans drawn down/(repaid)	7,551	(1,085)	(7,624)
Interest paid	(71)	(109)	(233)
Net cash inflow/(outflow) from financing activities	5,395	(2,314)	(9,497)
Net increase/(decrease) in cash and cash equivalents	228	(911)	(416)
Cash and cash equivalents at start of year	707	1,123	1,123
Cash and cash equivalents at end of period	935	212	707
Comprising:
Cash at bank	935	212	707

The accompanying notes are an integral part of these condensed financial statements.

 

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

1	Accounting policies - basis of preparation
	The condensed set of financial statements has been prepared in accordance with FRS 104, Interim Financial Reporting, FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Statement of Recommended Practice for "Financial Statements of Investment Trust Companies and Venture Capital Trusts", which was updated by the Association of Investment Companies in February 2018 with consequential amendments. For the period under review, the Company's accounting policies have not varied from those described in the annual report for the year ended 31 October 2018. These financial statements have been neither audited nor reviewed by the Company's auditors.
2	Expenses: management fees and performance fees
	Henderson Investment Funds Limited ("HIFL") is appointed to act as the Company's Alternative Investment Fund Manager. HIFL delegates investment management services to Henderson Global Investors Limited. References to the Manager within these results refer to the services provided by both entities. The management fee is calculated, quarterly in arrears, as 0.55% per annum on the net assets. Arrangements are in place for the Manager to earn a performance fee. The cap on total fees that can be earned in a financial year is 1.5% of the average net assets over the year. There is no performance fee accrual for the current period (30 April 2018: and 31 October 2018: £nil). Since 1 November 2013, the Company has allocated 70% of its management fees and finance costs to the capital return of the Income Statement with the remaining 30% being allocated to the revenue return. Performance fees payable are allocated 100% to the capital return.
3	Dividends
	The Board has declared an interim dividend of 7.0 p per ordinary share (2018: 6.5p), to be paid out of revenue  on 20 September 2019 to shareholders on the register of the Company at the close of business on 16 August 2019. The Company's shares will be quoted ex-dividend on 15 August 2019. Based on the number of ordinary shares in issue on 18 June 2019, the cost of this dividend will be £553,000. No provision has been made for the interim dividend in these condensed financial statements. The final dividend of 14.5p per ordinary share, paid on 22 March 2019 in respect of the year ended 31 October 2018, has been recognised as a distribution in this period.
4	Return per ordinary share - basic and diluted
		(Unaudited) Half Year ended 30 April 2019 £'000	(Unaudited) Half Year ended 30 April 2018 £'000	(Audited) Year ended 31 October 2018 £'000
The return per ordinary share is based on the following figures:
Revenue return		1,061	797	1,616
Capital return/(loss)		4,057	(1,526)	(7,215)
Total return/(loss)		5,118	(729)	(5,599)
Weighted average number of ordinary shares in issue for the period		7,938,225	8,000,858	8,000,858
Revenue return per ordinary share		13.36p	9.96p	20.20p
Capital return/(loss)per ordinary share		51.11p	(19.07p)	(90.18p)
Total return/(loss)per ordinary share		64.47p	(9.11p)	(69.98p)
5	Investments held at fair value through profit or loss
	The table below analyses fair value measurements for investments held at fair value through profit or loss. These fair value measurements are categorised into different levels in the fair value hierarchy based on the valuation techniques used and are defined as follows under FRS 102:                                         Level 1: valued using quoted prices in active markets for identical assets                                        Level 2: valued by reference to valuation techniques using observable inputs other than quoted prices included in Level 1                                                                               Level 3: valued by reference to valuation techniques using inputs that are not based on observable market date Investments held at fair value through profit or loss at 30 April 2019 (unaudited) Level 1 £'000 Level 2 £'000 Level 3 £'000 Total £'000 Investments 110,477 - 400 110,877 Current asset investments 2 - - 2 Total 110,479 - 400 110,879 Investments held at fair value through profit or loss at 30 April 2018 (unaudited) Level 1 £'000 Level 2 £'000 Level 3 £'000 Total £'000 Investments 112,802 - 400 113,202 Current asset investments 2 - - 2 Total 112,804 - 400 113,204 Investments held at fair value through profit or loss at 31 October 2018 (audited) Level 1 £'000 Level 2 £'000 Level 3 £'000 Total £'000 Investments 101,290 - 400 101,690 Current asset investments 2 - - 2 Total 101,292 - 400 101,692 There have been no transfers between levels of the fair value hierarchy during the period. The valuation techniques used by the Company are explained in the accounting policies note in the Company's Annual Report for the year ended 31 October 2018.
6	Called up share capital
	During the period ended 30 April 2019, 99,670 shares were repurchased to be held in treasury at a cost of £939,000 (half year ended 30 April 2018 and year ended 31 October 2018: no shares repurchased or issued).  At 30 April 2019 there were 8,000,858 ordinary shares of 25p each in issue (30 April 2018 and 31 October 2018: 8,000,858) of which 99,670 were held in treasury (30 April 2018 and 31 October 2018: no shares held in treasury) resulting in 7,901,188 shares being entitled to a dividend (30 April 2018 and 31 October 2018: 8,000,858).
7	Net asset value per ordinary share - basic and diluted
	Net asset value per ordinary share is based on the net assets attributable to the ordinary shares of £97,393,000 (30 April 2018: £99,750,000; 31 October 2018: £94,360,000) and on the 7,901,188 ordinary shares of 25p each in issue at 30 April 2019 (half year ended 30 April 2018: 8,000,858; year ended 31 October 2018: 8,000,858).
8	Transaction costs
	Purchase transaction costs for the half-year ended 30 April 2019 were £43,000 (30 April 2018: £11,000; 31 October 2018: £40,000); these comprise mainly stamp duty and commissions. Sale transaction costs for the half-year ended 30 April 2019 were £4,000 (30 April 2018: £6,000; 31 October 2018: £18,000); these comprise mainly commissions.
9	Related party transactions
	The Company's transactions with related parties in the period were with the Directors, and the Manager. There have been no material transactions between the Company and its Directors during the half year and the only amounts paid to them were in respect of expenses and remuneration for which there are no outstanding amounts payable at the half year period end. In relation to the provision of services by the Manager, other than fees payable by the Company in the ordinary course of business and the facilitation of marketing activities with third parties, there have been no material transactions with the Manager affecting the financial position of the Company during the half year period.
10	Going concern
	The Company's Articles of Association require that at the Annual General Meeting of the Company held in 2008, and every third year thereafter, an ordinary resolution be put to approve the continuation of the Company. The resolutions put to the Annual General Meetings in 2011, 2014 and in 2017 were duly passed. The next triennial continuation resolution will be put to the Annual General Meeting in 2020. The assets of the Company consist almost entirely of securities that are listed (or quoted on AIM) and are readily realisable. Accordingly, the Directors believe that the Company has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. Having assessed these factors and the principal risks, the Directors considered it appropriate to adopt the going concern basis of accounting in preparing the financial statements.
11	General information
	Company Status: Henderson Opportunities Trust plc is registered in England and Wales No. 01940906, has its registered office at 201 Bishopsgate, London EC2M 3AE and is listed on the London Stock Exchange. SEDOL/ISIN: 0853657 London Stock Exchange (TIDM) Code: HOT Global Intermediary Identification Number (GIIN): LVAHJH.99999.SL.826 Legal Entity Identifier (LEI): 2138005D884NPGHFQS77 Directors and Corporate Secretary: The Directors of the Company are Peter Jones (Chairman), Frances Daley (Audit Committee Chairman), Chris Hills, Malcolm King and Wendy Colquhoun. The Corporate Secretary is Henderson Secretarial Services Limited, represented by Melanie Stoner, FCIS. Website: Details of the Company's share price and net asset value, together with general information about the Company, monthly factsheets and data, copies of announcements, reports and details of general meetings can be found at www.hendersonopportunitiestrust.com.
12	Comparative information
	The financial information contained in the half-year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half year periods ended 30 April 2019 and 30 April 2018 has not been audited or reviewed by the Company's auditors. The figures and financial information for the year ended 31 October 2018 are an extract based on the latest published accounts and do not constitute statutory accounts for that year. Those accounts have been delivered to the Registrar of Companies and included the report of the auditors, which was unqualified and did not contain a statement under either section 498(2) or 498(3) of the Companies Act 2006.
13	Half Year Report
	The Half Year Report will be available in typed format on the Company's website, www.hendersonopportunitiestrust.com, or from the Company's registered office, 201 Bishopsgate, London EC2M 3AE. An abbreviated version, the 'Update', will be circulated to shareholders in June.

Neither the contents of the Company's website not the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

IR GIGDLUSBBGCI